
Airbnb market analysis and investment insights
$290
Sevierville, TN — Market Intelligence Report
Researched by Chalet's Senior STR Analysts · Verified with local Sevierville market partners
Sevierville, Tennessee, sits at the heart of the Smoky Mountains short-term rental market, defined by a robust, year-round cabin economy and a sharply seasonal revenue curve. The canonical Chalet data point: active full-time operators here average $46,160 in annual Airbnb revenue across 3,116 listings—a figure that sets the real revenue bar for serious investors. While the whole-market median is higher at $52,632, this is skewed by a large cohort of part-time and casual hosts. Median occupancy lands at 53%, with an ADR of $290 and a median gross yield of 12.99% against a median home value of $405,033. Nationally, Sevierville ranks #60 for STR performance. The market’s seasonality is pronounced: October peaks at $5,213 in monthly revenue and 70% occupancy, while February troughs at $2,932 and just 32% occupancy—a nearly 80% swing from top to bottom.
Investment clustering is visible in both bedroom configuration and geography. Three-bedroom cabins, a mainstay product, average $46,724 in annual revenue at a $328 ADR and 51% occupancy, aligning closely with the market’s full-time operator average. For those seeking higher returns, 4BR and 5BR properties push into $58,034 and $72,645 average annual revenue, respectively, with ADRs climbing to $442 and $577. These larger homes trade some occupancy for higher rates and group demand. On the geographic axis, the 37876 zip code (2,933 listings) posts a median annual revenue of $51,053 with a 53% occupancy and 12.8% yield, while neighboring 37862 (2,636 listings) edges slightly higher at $54,247 median annual revenue and a 12.5% yield. Investors looking for granular product-market fit can connect with a Chalet agent for on-the-ground insights.
At the top end, 6BR and 8BR properties demonstrate the ceiling for revenue scale, averaging $93,462 and $107,445 respectively, with ADRs north of $800 and $1,000. These segments, while representing a small share of supply, are not thin samples and cater to large groups and family reunions—a perennial demand driver in the Smokies. However, occupancy for these larger homes trails the market at 43–44%, underscoring the tradeoff between nightly rate and fill. For yield-focused buyers, the 2BR and 1BR segments offer lower entry prices and steady occupancy (54–55%), but with annual revenue in the $32,000–$38,000 range, scale is required to match the returns of larger homes.
Sevierville’s investor case is built on resilient domestic demand, with negligible international exposure (0.2% of reviews) and a guest pool anchored in drive markets—Nashville, Atlanta, Knoxville, Chicago, and Charlotte all contribute meaningful share. Booking lead times average 43 days (median 28), and the average stay is 3.8 nights, supporting a stable, repeatable booking cadence. Investors with professional management and the ability to optimize for seasonality and group demand win here. For underwriting and scenario modeling, the Chalet ROI calculator offers a tailored approach to revenue and yield projections.
Risks are concentrated around volatility and compliance. Occupancy surged +13.5% year-over-year, and ADR jumped +18.1%, even as listing supply contracted -7.0% and home values declined -3.1%. The biggest movement—ADR up 18.1%—reflects both pricing power and competitive culling. However, the sharp February trough (32% occupancy) and the annual permit/inspection regime mean investors must plan for both cash flow seasonality and regulatory overhead. While Sevierville’s regulatory environment is stable and compliance-driven, annual permitting and inspections are mandatory; see Sevierville STR regulations for details.
Sevierville’s Airbnb market rewards scale, operational discipline, and group-friendly product, with 2026’s standout feature being a decisive shift toward higher rates and tighter supply.
| 37876 |
| 13% |
| $51,053 |
| 4,400 |
| $399K |
| 3 | 37738 | 13% | $51,862 | 6 | $400K |
For a complete breakdown, visit our guide to Airbnb laws in Sevierville, TN